Objectives: Diabetes leading to the production and circulation of glycated albumin, methylglyoxal, and advanced glycation end products along with the reduction of the activity of glyoxalase-I (GLO-I) contribute to diabetic nephropathy. Therefore, we studied the effect of 1,8 cineole (Cin) on the formation of diverse glycation products and the activity of GLO-I as well as renal histological alterations in the type-2 diabetic rat. Materials and Methods: Type 2 diabetes was induced in rats with a combination of streptozotocin and nicotinamide (55+200 mg/kg). Two groups of rats, normal and diabetic, were treated intragastrically with EUC (200 mg/kg) once daily for 2 months the 2 other similar groups received vehicle only. Fasting blood sugar, insulin, insulin resistance index, lipid profile, the activity of GLO-I, LDL glycation (Glycated albumin, Glycated LDL, Methylglyoxal, and advanced glycation end products) and oxidative stress (Advanced oxidation protein products, malondialdehide, oxidized LDL, and reduced glutathion), inflammatory markers (Tumor necrosis factor-α and Transforming growth factor-1β), creatinine in the serum, and proteinuria in the urine of all rats was determined as well as renal histological alterations were investigated. Results: Cin reduced histopathological alternations in the kidneys of the diabetic rat compared to untreated diabetic rats. Moreover, the treatment decreased different glycation, oxidative stress, and pro-inflammatory markers. The treatment had a beneficial effect on glucose and lipid metabolism as well as the activity of GLO-I (p < 0.001). Conclusions: Cin ameliorated diabetic nephropathy via anti-glycation, antioxidant, and anti-inflammatory properties along with the induction of the activity of glyoxalase-I and the advantageous effect on glucose and lipid metabolism in type 2 diabetic rats.